Wheat and milk powder are among 100 U.S. ag products on the retaliation list issued by Brazil Monday in the long standing dispute over U.S. cotton subsidies. Iowa Senator Chuck Grassley says U.S. Commerce Secretary Gary Locke is expected to address the matter while in Brazil. He says Locke needs to assure Brazil that the U.S. will obey WTO rules, but expects other countries to do the same.
Import tariffs are scheduled to go into effect in 30 days unless the governments can reach a last minute agreement. Wheat tariffs would be raised from 10-percent to 30-percent, while milk powder goes from 28-percent to 48-percent.Grassley says if the U.S. doesn’t follow WTO rules then we need to accept the retaliation.
The U.S. said it was disappointed by the move as it sets a terrible precedent for all ag trade.Last year the WTO allowed Brazil to impose sanctions on U.S. imports after they ruled U.S. cotton subsidies were too high
